LTC Bullet: Tax Breaks for LTCI Not Likely Soon
Friday September 21, 2001
On August 28, in an LTC Bullet, we asked the question "Will LTC Tax Deductibility Pass This Year?" (www.centerltc.org/bullets/current/296.htm). We invited you to subscribe to and then visit the Center's new "donor-only" website zone to find the answer to that question. Those of you who took this advice found our answer to be: "don't hold your breath" followed by an explanation of the political dynamics that now made passage of tax deductibility unlikely this year. Two weeks after our prediction, the following blurb from a Senate sponsor of the legislation confirmed our assessment. Remember, you heard it here first.
"TAMPA, FL, Sept. 12 (Medical Newswire) The budget crunch may claim another victim, warns U.S. Sen. Bob Graham (D-FL). Graham told a meeting at the University of South Florida that a congressional vote on his plan to offer a tax credit to families caring for the elderly and to make long-term care insurance more affordable will be held up until the condition of the country's budget is clearer, the Associated Press reports. The intent of Graham's proposal, estimated to cost $20 billion over five years, is to provide financial relief to people who don't want to place relatives in nursing homes."
Tragically, the horrific events of last Tuesday have made the probability of passing LTCI tax deductibility this year even more remote. America's priorities and financial resources have now turned to a more immediate and lethal crisis.
On a positive note, the Journal of Financial Planning (JFP) has published Center President Stephen Moses' article "Long-Term Care Due Diligence for Professional Financial Advisors" as its "Last Words" column for the September 2001 issue. To read the article, go to the following web address: www.journalfp.net/jfp0901-art16.cfm. (A slightly different version is available on the Center's web site at www.centerltc.org.) According to the JFP's mission statement: "The Journal of Financial Planning is the official publication of the Financial Planning Association. Its goal is to foster intelligent and informed dialogue, and enhance the knowledge and understanding of the ever-changing technical and practice management aspects facing the growing community of financial planning practitioners. From asset management to the needs of the elderly, all of the complex and diverse aspects of the financial planning process are explored." Circulation: 48,000 financial planning professionals, including the full membership of the Financial Planning Association plus selected other CFP licensees, CFP candidates, CPAs, ChFCs, CFAs and attorneys.